Why state government exports jobs

I have been following the exchange regarding the Maine Office of Tourism advertising contract with more than a little interest.

Unfortunately, this story is all too familiar. My company has a division that specializes in marketing research for the tourism industry. We are one of only a handful of firms in the country that are recognized for the services we provide. Two years ago, we bid on the Maine Office of Tourism research contract. It was about $250,000 worth of work on an annual basis. The contract was awarded to a Canadian company, the same firm that had been the supplier for the previous three years. We appealed that decision on the grounds that the procurement process was flawed.

The state of Maine agreed with us, citing “fundamental unfairness” in overturning the contract award. A period of six months passed, after which the Maine Office of Tourism issued a nearly identical request for services. The Canadian firm won again. What incentive is there for a qualified Maine business such as ours to answer future service requests?

In the ensuing two years, the Maine economy has suffered the effects of the dot.com collapse, the stock market decline, terrorist attacks on our own soil, and general global uncertainty. At my own firm, while business has softened, we are fortunate to have a loyal client base and a strong national reputation on which to trade. Would our own “economic landing” have been softer had we been awarded the Maine tourism research contract? Absolutely. Would it have helped us grow our business had we laid claim to the “bragging rights” associated with an important account in our own back yard? You bet. Would we have worked hard to give MOT the best doggone research program they have ever seen? You can count on it.

Now it appears this tale of woe is being repeated in the Portland advertising sector.

Oh I’ve heard the MOT explanations:

We create more jobs with a good tourism campaign than by keeping the advertising work at home.

We followed proper procurement procedures.

We need continuity in our research program.

They’re (the New York agency) going to open an office here. “It’s in the damn proposal.” (Maine Biz quoting Dann Lewis, Director of MOT)

These arguments have some merit. Yet, the most important point seems to have been lost on the Maine Office of Tourism and the umbrella Department of Economic and Community Development (DECD):

There are a number of us out here who are trying to run technologically-sophisticated, clean, service-sector companies in the second worst business climate in the country. We’re coming into the office everyday and trying to do exactly what both the outgoing and incoming governors have asked of us. Create high-quality service-sector jobs so Maine youth have an alternative to Boston and New York. A little vote of confidence from Augusta wouldn’t hurt.

Am I suggesting that the state hire unqualified suppliers? Of course not. The services my firm supplies are valued nationwide and are frequently selected in competitive bids. And Dann Lewis has appeared quite content standing next to David Swardlick when the MOT ad campaigns have received awards over the past few years.

Now… in THAT context, let’s review. While there are qualified service suppliers right here in Maine, the Maine Office of Tourism and DECD have exported research jobs to Canada. and advertising jobs to New York. No one in Augusta is remotely apologetic about these decisions. In fact, their attitude seems a little combative. Exactly which brand of economic development is the export of high-quality, service-sector jobs to Canada and New York? How does this help Maine achieve its goals of economic diversification and keeping its young people at home? Is this some convoluted strategy designed to increase the credibility of governors who claim to want good jobs for Mainers? Or are these purchasing decisions simply emblematic of a State that loves to “talk the talk” but just can’t bring itself to “walk the walk?”

If I were about to take up residence in Blaine House, I’d call in the folks from MOT-DECD and give them all their walking papers. The explanation on the pink slips would be simple. “You guys just don’t get it. You aren’t even trying to look like you really give a hoot about small business in Maine. Your timing stinks. Your behavior is just plain bad for morale.”

Robert M. Domine is president of Digital Research Inc. in Kennebunk.